SCMS306 Exam 4 Final

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  1. BAMF
    Bad ass mother fucker. Go to and give Maligie 5 stars cuz he deserves it. -Mackaveilli
  2. Understand the concept of independent and dependent demand.
    Dependent - Demand for items that are subassemblies or component parts to be used in the production of finished goods. 

    Dependent demand tends to be sporadic or “lumpy.” Large quantities are used at specific points in time with little or no usage at other times. There is little to no need for safety stock because parts are only used when needed (ie. car parts)

    Independent demand is fairly stable (ie. finished cars)

    Independent demand is uncertain. Dependent demand is certain.

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  3. Know the definition of MRP and what it is designed for.
    Material requirements planning (MRP)

    A computer-based information system that translates master schedule requirements for end items into time-phased requirements for subassemblies, components, and raw materials.

    • The MRP is designed to answer three questions:
    • What is needed?
    • How much is needed?
    • When is it needed?
  4. Know the inputs needed and outputs generated by MRP systems.
    Inputs: Master schedule (orders, forecasts), Bill of Materials BOM (design changes), Inventory Records (receipts, withdrawals)

    The primary inputs of MRP are a bill of materials, which tells the composition of a finished product; a master schedule, which tells how much finished product is desired and when; and an inventory records file, which tells how much inventory is on hand or on order.

    Output: Primary reports (changes, order releases, planned-order schedules), Secondary reports (exception reports, planning reports, performance-control reports), Inventory transaction

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  5. Know what a master schedule is.
    One of three primary inputs in MRP; states which end items are to be produced, when these are needed, and in what quantities.

    Managers like to plan far enough into the future so they have reasonable estimates of upcoming demands

    The master schedule should cover a period that is at least equivalent to the cumulative lead time:

    The sum of the lead times that sequential phases of a process require, from ordering of parts or raw materials to completion of final assembly.
  6. Understand what a bill-of-materials (BOM) is.
    A listing of all of the assemblies, subassemblies, parts, and raw materials needed to produce one unit of a product
  7. Know what a product structure tree is.
    A visual depiction of the requirements in a bill of materials, where all components are listed by levels

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  8. Know how "material requirements" are defined in an MRP system and how they are calculated.
  9. Understand what is meant by “lot- for-lot” ordering.
    • The order or run size is set equal to the demand for that period
    • Minimizes investment in inventory
    • It results in variable order quantities
    • A new setup is required for each run
  10. Know what is meant by gross requirements for an MRP system and how it is calculated.
  11. Know what is meant by "Pegging" as it relates to an MRP system.
    Pegging - The process of identifying the parent items that have generated a given set of material requirements for an item

    Pegging enables managers to determine which product(s) will be affected if orders are late due to late deliveries, quality problems, or other problems.
  12. Know what is meant by a ”net change system” and a “regenerative system” as it relates to a MRP system.
    regenerative system - Approach that updates MRP records periodically; updated periodically

    net-change system - approach that updates MRP records continuously; continuously updated
  13. Know what is meant by “exploding” in an MRP system as it relates to a bill of materials.
    MRP processing takes the end item requirements specified by the master schedule and “explodes” them into time-phased requirements for assemblies, parts, and raw materials offset by lead times
  14. Be sure you know how to determine what type of items are typically going to have independent or dependent demand.
    Dependent - component parts (car parts)

    Independent - finished/assembled (cars)
  15. Know what is meant by “lumpy” demand.
    Large quantities are used at specific points in time with little or no usage at other times
  16. Know the basic differences between MRP, MRP-II and ERP.
    MRP - material requirements planning

    MRP II - evolved from MRP in 1908s, manufacturing resource planning, involves other areas of the firm in the planning process, and enabling capacity requirements planning. Capable of running simulations to answer "what-if" questions and show available options and consequences. MRP II expanded the scope of materials planning to include capacity requirements planning, and to involve other functional areas of the organization such as marketing and finance in the planning process.

    ERP was the next step in an evolution that began with MRP and evolved into MRPII

    Represents an expanded effort to integrate standardized that will permit information sharing among different areas of an organization in order to manage the system more effectively

    ERP systems are composed of a collection of integrated modules

    Integration of supply chain, Production and Administration
  17. Know what a “load report” is as it relates to MRP and the production environment.
    Department or work center reports that compare known and expected future capacity requirements with projected capacity availability.

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  18. Know the definition of “back flushing” as it relates to an MRP system.
    The ability to easily determine inventory usage via backflushing:

    -Exploding an end item’s BOM to determine the quantities of the components that were used to make the item
  19. Know what is meant by “JIT”.
  20. Understand the basic philosophies of JIT.
  21. In a JIT system small lot sizes are viewed as good, understand why.
  22. Know what is considered the “ideal” lot size for a JIT system.
  23. Understand the concept of “kanban”.
  24. Know what is meant by "autonomation".
  25. Know what is meant by preventative maintenance and why it is important in a JIT system.
  26. Know what is meant by the “Five S’s”.
  27. When a JIT system is employed, understand what type of supplier relationships are preferred.
  28. Understand the basic parameters of JIT-II.
  29. Review the obstacles the firm might incur when switching to a JIT system.
  30. Review the competitive advantages for a firm that is successful in implementing JIT/lean production.
  31. Understand what the alternate objective in a JIT system is.
  32. Understand how project management activities differ from traditional management activities.
  33. Understand what a PERT chart is.
  34. Understand the responsibilities of a project manager.
  35. Understand what is meant by “path” in the project management world.
  36. Understand what is meant by a “work breakdown structure”.
  37. Understand what is meant by the term “crashing” a project.
  38. Know the definition of “critical path” as it relates to project management.
  39. Understand what “probabilistic” means as it relates to project network analysis.
  40. When crashing a project understand what activities to project managers generally focus on.
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SCMS306 Exam 4 Final
SCMS306 Exam 4 Final
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